Current trend
This week the USD/CAD pair continues to fall, despite the increasing statements of USA upon the intention to quit NAFTA. There are enough facts, which reflect the further fall of the pair. Yesterday Fed’s representative Lael Brainard stated that the economy indices will definitely fall due to Harvey hurricane. In addition, the US currency is under the pressure due to difficult situation upon the maximum volume of Government loans, nuclear crisis between USA and North Korea and Friday’s negative employment market statistics, which prevents Fed from tightening of the monetary policy in 2017.
At the same time Canada economy is growing with the highest rates of G7 countries. It’s expected that the pair will be falling to the levels of 1.2200–1.2000, until the CB of Canada expresses the concern upon the high rate of CAD.
Today the key issue is the Bank of Canada interest rate decision. As the economy has been growing for a long time and oil prices have restored, expects assume the growth of the rate by 25 basis points. Anyway, the investors are sure that the Canada regulator’s position will be “hawkish”, which will help the trade instrument to fall further.
Support and resistance
On the daily chart the instrument is going down along the lower border of Bollinger Bands. Indicator is pointed sideways, as the price range is widening, reflecting the high possibility of the downward trend development. MACD histogram is in the negative zone, keeping a strong sell signal. Stochastic is ready to leave the overbought area.
Support levels: 1.2330, 1.2300, 1.2275, 1.2240.
Resistance levels: 1.2435, 1.2500, 1.2560, 1.2685, 1.2790.
Trading tips
Short positions can be opened at the current price with the targets at 1.2300, 1.2275 and stop loss at 1.2450. Implementation period: 1-2 days.
Long positions can be opened at the level of 1.2490 with the target at 1.2550 and stop loss at 1.2445. Implementation period: 1-2 days.
This week the USD/CAD pair continues to fall, despite the increasing statements of USA upon the intention to quit NAFTA. There are enough facts, which reflect the further fall of the pair. Yesterday Fed’s representative Lael Brainard stated that the economy indices will definitely fall due to Harvey hurricane. In addition, the US currency is under the pressure due to difficult situation upon the maximum volume of Government loans, nuclear crisis between USA and North Korea and Friday’s negative employment market statistics, which prevents Fed from tightening of the monetary policy in 2017.
At the same time Canada economy is growing with the highest rates of G7 countries. It’s expected that the pair will be falling to the levels of 1.2200–1.2000, until the CB of Canada expresses the concern upon the high rate of CAD.
Today the key issue is the Bank of Canada interest rate decision. As the economy has been growing for a long time and oil prices have restored, expects assume the growth of the rate by 25 basis points. Anyway, the investors are sure that the Canada regulator’s position will be “hawkish”, which will help the trade instrument to fall further.
Support and resistance
On the daily chart the instrument is going down along the lower border of Bollinger Bands. Indicator is pointed sideways, as the price range is widening, reflecting the high possibility of the downward trend development. MACD histogram is in the negative zone, keeping a strong sell signal. Stochastic is ready to leave the overbought area.
Support levels: 1.2330, 1.2300, 1.2275, 1.2240.
Resistance levels: 1.2435, 1.2500, 1.2560, 1.2685, 1.2790.
Trading tips
Short positions can be opened at the current price with the targets at 1.2300, 1.2275 and stop loss at 1.2450. Implementation period: 1-2 days.
Long positions can be opened at the level of 1.2490 with the target at 1.2550 and stop loss at 1.2445. Implementation period: 1-2 days.